Asked by
Daija JaNay
on Dec 11, 2024
Verified
A profit-maximizing firm will continue to expand output
A) as long as the revenues from the production and sale of an additional unit exceeds the average costs of the unit.
B) until the average cost of producing the good or service is at a minimum.
C) as long as the revenues from the production and sale of an additional unit exceeds the marginal cost of the unit.
D) until the marginal cost of producing a good or service is at a minimum.
Profit-maximizing Firm
A business organization that focuses on making the highest possible profit by adjusting its production and pricing strategies.
Marginal Cost
The rise in overall expenses associated with the creation of an extra unit of a good or service.
- Use the concepts of marginal revenue and marginal cost as a basis for decision-making in markets with price-taking firms.
Verified Answer
OM
Learning Objectives
- Use the concepts of marginal revenue and marginal cost as a basis for decision-making in markets with price-taking firms.